Purchasing Card Policies and Procedures

Complete documentation of policies and procedures related to use of the PCard.

Required reading for all cardholders and administrators.

Purchasing Card Program Manual *

*Requires Acrobat Reader to download.

Authorized Use and Restrictions
Abuse and Fraudulent Use
Spending Limits
Travel Expense Guidelines for PCard Use
Typical Purchases
Excluded Commodities
Tax Exemption

Authorized Use and Restrictions

All purchases must be for University business purposes only. Personal use is strictly prohibited. Any violation of this policy will result in disciplinary action, beginning with revocation of card privileges.
Only the approved cardholder is authorized to use the card and must maintain confidentiality of his or her account information. Sharing the card number only increases the risk of fraud.
The PCard is NOT to be used for business travel expenses or non-local meeting expense. The Travel Office issues separate cards for such expenses: please visit www.bu.edu/travel.

Abuse & Fraudulent Use:

Fraudulent use or misuse of the PCard will result in revocation of the card. The University will seek restitution for any inappropriate charges made to the account. Misuse of the PCard may result in corrective action up to and including termination and/or possible legal action. It is important to remember that the PCard program is not intended to bypass purchasing or travel request procedures currently in place at Boston University. The PCard is never to be presented for personal use.
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Spending Limits

Each cardholder has a specific transaction amount and monthly credit limits. With very few exceptions, the limit per transaction is $1,000 and the limit for monthly expenditures is $10,000. The monthly limit may be adjusted by the PCard Program Administrator with the approval of department and unit fiscal managers.
Asking a vendor to split the purchase of an item into separate transactions (or on multiple days) in order to keep the purchase under the cardholders’ single purchase limit is strictly prohibited.
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Travel Expense Guidelines for PCard Use

Airfare – BU Travelers
Use of PCard for employee airfare travel payment is strictly prohibited. The Diners Club Corporate Card or a personal card must be used to purchase air travel for BU employees.
Airfare – Guests
On occasions where the University wishes to provide airfare for a guest or visitor to our campuses, the PCard should be used to purchase the flight.
Auto Rental – Local
When an automobile is needed for University associates on or around campus, the PCard should be used.
Auto Rental – While Traveling
Use of PCard for employee auto rentals while traveling is strictly prohibited. When University employees are traveling and need to rent an automobile, the Diners Club Corporate Card or a personal card should be used.
Conference Registration Fees
Before traveling to a conference (local or remote), any applicable registration fees should be purchased using the PCard.
Hotel Reservations – BU Employees
Use of PCard for employee travel payment is strictly prohibited. Lodging for traveling University employees should always be purchased with either the Diners Cub Corporate Card or a personal card.
Hotel Reservations – Local (Guests)
Local hotels are used to lodge business guests and visitors of the University. The hotels should be selected from the list of preferred establishments within the Boston area. The PCard should be used to book local hotels for business guests and visitors of the University.
Meals – Local Business Meetings
The PCard should be used to purchase food and beverages for local meetings (at or near Boston University). No significant travel costs should be incurred by University employees in these instances.
Meals – Traveling BU Employees
Use of PCard for employee or non-employee meals & entertainment related to travel is strictly prohibited. When University employees are required to travel (days trips or overnight trips), food and beverages for the employee and their business guest(s) should be purchased with the Diners Club Corporate Card or a personal card.
Meetings Expense – Local
The PCard should be used for catering and/or other expenses needed for meetings held at or near Boston University.
Parking on or Near Campus
When paying for local parking for an employee or a guest, the PCard should be used.
Parking While Traveling
Use of Pcard for employee parking while traveling is strictly prohibited. While traveling, all parking expenses should be paid for with either the Diners Club Corporate Card or a personal card.
Taxi Service – Local
Taxis or other livery services at or near Boston University can be purchased with the PCard.
Taxi Service – While Traveling
Use of PCard for taxi service while traveling is strictly prohibited. When traveling, BU employees should use the Diners Club Corporate Card or a personal card to pay for taxis and any other form of transportation.
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Typical PCard Purchases

Materials and supply items from preferred suppliers
Office and laboratory supplies
Books and subscriptions (including magazines, research and on-line services)
Express mail shipping charges, couriers and postal meters
Education and training/seminars
Dues and memberships (i.e., business related associations, etc.)
Local meeting expenses and conference fees (not involving travel)
Bottled water
Employee relocation services
Freight fees (including duties, taxes and applicable customers brokerage fees)
Photocopy expenses
Translations, interpreting and language study
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Excluded Commodities

Advertising
Radioactive substances
Controlled substances
Furniture, drapes, and carpeting
Equipment leases
Travel expenses
Service/maintenance contracts
Legal fees
Mortgages, rents, and real estate taxes
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Tax Exemption

With the exception of prepared meals and temporary lodging, purchases made on behalf of the University are not taxable. Vendors need to be informed of this fact and provided with the University’s tax-exempt ID number, which is printed on the face and back of the PCard. Vendors may also request copies of the Massachusetts ST-2 and ST-5 tax exemption forms, which are available from the Comptroller’s web site.
Any questions about the taxability of a purchase should be referred to the Comptroller’s Office at (617) 353-6599 or (617) 353-3529.
If tax is charged, cardholders should seek a credit from the vendor.
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